BusinessReporTo Shareholders and Investors

Interim Business Reportthfor the 84 Term
From April 1, 2016
to September 30, 2016

Securities Identification Code: 6455

To p M e ssag eGreeting

Shosaku Morita, who Morita Holdings is named after, founded
our company in 1907 and made the first gasoline-powered firepump in Japan.
Ever since then, Morita Holdings has been developing
firefighting technology in Japan, working as a leading
manufacturer of fire trucks for over a century. We owe oursuccess to our customers who have continued to support usto this very day, for which we are deeply grateful.
In addition to our dedication to the protection of human lifeand property from fire, we have embarked in environmentrelated businesses including environmental conservation
vehicles, waste rec ycling plants and waste disposal

equipment, working hard to tackle the great challenge ofprotecting our natural green environment from lifestyleinduced pollution.
For the future, we have our sights set on a progressively global
expansion, and aim to be the corporation for safety andsecurity.
Under the slogan of Protecting Human Life and Mother Earth,
Morita Group continues to unflinchingly commit itself todeveloping and embracing new technologies to protect ourlives.

Masahiro Nakajima, Chairman & CEO
Kazumi Ogata, President

Overview of the first half of 84th Term
N et sal e s

Operating income

Ordinary income¥ 29,571 million¥ 1,850 million¥ 2,052 million

Year on year

Up 35.0%

Year on year

Up 24.5%

In the second quarter of the current fiscal year, the Japanese
economy experienced a gradual recovery in corporate income
and employment conditions as a result of various economic
policies implemented by the government. However, thestronger yen resulting from the uncertain international
political situation such as Britain’s exit from the European
Union (EU), in addition to a slowdown in economic growth,particularly in newly emerging economies, means that
uncertainty remains about the future direction of theeconomy.
Under this environment, in the first year of medium-term
management plan “Morita Advance Plan 1000”, the Morita
Group has implemented initiatives with the aim of increasing
our corporate value.

Year on year

Up 11.9%

Net income attributable toowners of parent company¥ 1,304 million

Year on year

Up 41.4%

Under these circumstances, largely as a result of the positive
performance in domestic orders and sales in the Fire Fighting
Vehicles Business and the contribution of sales at newly
consolidated subsidiary BRONTO SKYLIFT OY AB, net sales
increased by ¥7,671 million compared to the same period in
the previous year to ¥ 29,571 million (+35.0%); operating
income increased by ¥364 million compared to the same
period in the previous year to ¥1,850 million (+24.5%); ordinary
income increased by ¥218 million compared to the sameperiod in the previous year to ¥2,052 million (+11.9%); andquarterly net income attributable to owners of parent
company increased by ¥381 million compared to the same
period in the previous year to ¥1,304 million (+41.4%).

tMorita News
Growth in demand for the Compressed Air Foam System (CAFS)

Fire Fighting
Vehicles Business

The Miracle CAFS Car developed by Morita is a revolutionary pumper thatmakes huge changes to the existing concept of fire-fighting. More than 1,300
vehicles (as of April 1, 2016) have already been deployed to fire departments, fireacademies, volunteer fire corps and companies all over Japan, and demand isincreasing year on year.
CAFS stands for “Compressed Air Foam System”. This equipment creates foam byadding a small amount of foaming agent into water and pumping incompressed air. By increasing the surface area of the water, the product displays
high fire extinguishing performance using a small volume of water. In June thisyear, the CAFS standard of the Japan Fire Equipment Inspection Institute wasofficially employed as an ISO international industrial standard, almost withoutmodification. Accordingly, in the future we will work hard to target the overseas
market in proposing the “Miracle CAFS Car”.

Industry first – Achieving a type 10 commercial fire extinguisher
with total mass in the 3 kg range (less than 4 kg)
Morita Miyata Corporation has developed and launched sales for ALTESIMO II
MEA10A, which is a lighter version of the aluminum stored-pressure powder fire
extinguisher ALTESIMO. ALTESIMO has received excellent reviews since its
launch in September 2011. ALTESIMO II MEA10A has a total mass in the 3 kgrange (less than 4 kg), which is an industry first.
The recently developed ALTESIMO II maintains an extremely low risk of pressureleakage by using aluminum material to make a molded container without joints,
while at the same time reducing the product weight further in anticipation of anageing society. In this way, this fire extinguisher is an embodiment of a productthat meets customers’ needs. Fire extinguishers are essential to initial stage firefighting, and play an important role as a “guard” in our homes and workplaces.
Providing a fire extinguisher that is lighter than ever and easier to hold, inaddition to maintaining its original features of having an attractive appearance
and increasing our safety, is something we consider part of our mission as theindustry’s top manufacturer.
Additional features include the use of ergonomic techniques to make a more
visible label and easy-to-read design, use of recycled fire extinguishing agentsfor more than 40% of the product, and acquisition of Eco-Mark accreditation as afire extinguisher that has a collection and recycling system.

Aluminum stored-pressure powder fire extinguisher“ALTESIMO II MEA10A”

Full model change for the Press Master press-type garbage truck
Morita Econos Corporation has launched sales of the press-type garbage truck“Press Master”, which has undergone a full model change.
The Press Master is a press-type garbage truck that aims to make garbage
collection more efficient, improve safety, and reduce the work burden. Tail lamps
and signal lights are concentrated on the unique high-mounted rear panel,
helping to improve visibility from the rear and safety. Furthermore, in order toreduce the workload for operators, the loading slots have been designed at thelowest height for a garbage truck of its class, making it even easier to use.
By utilizing dramatic improvements to the design, the Press Master now
combines practicality with a beautiful and bold design.
Moving forward, we will continue to value the opinions of our customers, andpursue products that are both safer and highly practical.
[Features of the Press Master]- 5% increase in capacity (compared to previous model)- ‌High-mounted rear panel (functions to attract people’s attention in a wider area,and styling that creates a lighter impression)- ‌Body with outstanding design (uses new ribbed shape for both strength androbustness)- Low loading slots (design at the lowest height in its class for improved operability)

Fire Protection Equipments &Systems Business

Environmental Conservation
Vehicles Business

O

Financial Highlights (Consolidated)
Operating income

Unit: Millions of yen: First half

: Full-year

Unit: Millions of yen: First half

85,000(Forecast)

71,943

71,66623,972(Forecast)

8,240

68,574

7,517

6,694

29,571

23,40021,8991,028

2014.3: Full-year

9,000

2015.32017.32016.3

1,006

2014.3

Ordinary income

1,850

1,486

2015.32017.32016.3

Net income attributable to owners of parent company

Unit: Millions of yen: First half

: Full-year

Unit: Millions of yen

9,200: First half

(Forecast)

8,375: Full-year

5,400(Forecast)

8,123

4,709

4,537

6,983
3,527

1,084

1,833

1,180

2014.3

2,052
519

2015.32016.32017.32014.3792922

2015.3

1,304

2017.32016.3

Performance by Segment
Fire Protection Equipments & Systems BusinessFire Fighting Vehicles BusinessNet sales

Net sales

7,521 million yen
Income297 million yen

Year on year
Down 3.6%

Environmental Conservation Vehicles BusinessNet sales

4,939 million yen
Income569 million yen

IncomeYear on year
Down 41.2%

Sales of fire extinguishers andSPRINEX, a packaged automatic
fire extinguishing system, areexpected to be stronger in the
fourth quarter.

Year on year
Up 5.2%
Year on year
Up 5.2%

Product orders and sales havebeen strong.

Year on year

15,275 million yen Up 97.9%
1,009 million yen

25.4%
Net Sales
Composition

16.7%

51.7%

Year on year
Up 160.4%

Orders and sales in thedomestic market have beenstrong, and sales of newly
consolidated subsidiary
BRONTO SKYLIFT OY AB has
made a contribution.

Recycling Machines Business6.2%

Net sales

1,834 million yen
Loss

9 million yen

Year on year
Up 9.3%

Income of 52 million yen
in the same period of
the previous fiscal year

Product orders have decreased,
but the focus has been on
components and maintenancesales.

peration Highlights

Net sales

Company Profile and Stock Information
Major Group Companies
Company Name

MORITA HOLDINGS CORPORATION

Inauguration ofBusiness

April 23, 1907

Establishment

July 23, 1932

Capital

4,746 million yen

Osaka Head Office

3-6-1 Dosho-machi, Chuo-ku, Osaka-shi, Osaka

Tokyo Head Office

3-25-31 Nishishinbashi, Minato-ku, Tokyo

Type of BusinessControl/management of business activities ofgroup companies, and being entrusted withindirect management operations

1-5 Techno Park, Sanda-shi, Hyogo,669-1339, Japan

MORITA CORPORATION

Development, manufacturing and sales of laddertrucks, fire trucks and other types of fire trucks
and specialty vehicles

Shiba 256 Square Building 8F, 2-5-6
Shiba, Minato-ku, Tokyo, 105-0014, Japan

MORITA MIYATACORPORATION

Development, manufacturing and sales of fire
extinguishing-related equipment, mainly of fireextinguishers, firefighting equipment and otherfire protection equipment

MORITA ENVIRONMENTAL
TECH CORPORATION

Executives
Chairman & CEO

Masahiro Nakajima

President

Kazumi Ogata

Director

Yukihiro Maehata

Director

Toru Matsuo

Director

Mitsuo Isoda

Full-Time Corporate Auditor

Eiji Asada

Full-Time Corporate Auditor

Atsushi Sasaki

Full-Time Corporate Auditor

Yusuke Takano

Auditor

Masaru Ota

Corporate Executive Officer

Hiroko Urano

Corporate Executive Officer

Naohisa Sakamoto

Corporate Executive Officer

Shinichi Kanaoka

Corporate Executive Officer

Shinya Murai

1530 Konoda-cho, Funabashi-shi, Chiba,274-0081, Japan
Design and construction of waste recycling
facilities and other waste disposal facilities.
Development, manufacturing and sales of large
hydraulic equipment

1-48 Jinmu-cho, Yao-shi, Osaka,
581-0067, Japan

MORITA ECONOSCORPORATION

Development, manufacturing and sales ofenvironmental conservation vehicles such as
sanitation vehicles and garbage trucks

32 Techno Park, Sanda-shi, Hyogo,669-1339, Japan
MORITA TECHNOSCORPORATION

Aftercare service and maintenance of fire trucks
and of equipment and materials for lifesaving.
Development, manufacturing and sales ofelectronic applied machinery and information
processing machinery

BRONTO SKYLIFT OY AB

Development, manufacturing and sales ofcombined platform ladders and mobile elevating
work platforms

Tampere City, Republic of Finland

Distribution of Shares by Type of Shareholder

Information about the StockBusiness Year

April 1 to March 31

Annual General Meeting ofJune
Shareholders
Reference Dates

Annual General Meeting of Shareholders - March 31
Year-end Dividend - March 31
Interim Dividend - September 30
Other dates published in advance as necessary

Method of Public Notice

Posted as electronic public notice on company website
http://www.morita119.com/kohkoku/index.html

Administrator of
the Shareholders List

Sumitomo Mitsui Trust Bank, Limited
1-4-1 Marunouchi, Chiyoda-ku, Tokyo

Place of Clerical Office forthe above

Stock Transfer Agency Department, Sumitomo Mitsui
Trust Bank, Limited
4-5-33 Kitahama, Chuo-ku, Osaka-shi, Osaka(Postal Address)

Stock Transfer Agency Department, Sumitomo Mitsui
Trust Bank, Limited
2-8-4 Izumi, Suginami-ku, Tokyo, 168-0063

As of September 30, 2016
Securities companies 0.4%

Treasury shares 3.6%
Other Japanese
corporations
8.1%
Non-Japanese
corporations
11.0%

Total

46,918,542 sharesIndividuals/others

Financial institutions
44.6%

32.4%

Top 10 Shareholders

As of September 30, 2016

Name

No. of shares (thousand)

The Dai-ichi Life Insurance Company, Limited

3,265Japan Trustee Services Bank, Ltd. (Trust account)

2,496
2,494

(Telephone Inquiries)+81-3-3323-8222

Morita Trading-Partner Shareholding Association(Internet Website URL)

http://www.smtb.jp/personal/agency/index.html

Mizuho Bank, Ltd.

2,087

Stock Listing

Tokyo Stock Exchange

Sumitomo Mitsui Trust Bank, Limited

2,082

Number of shares per unit 100 shares

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

2,048[Special Account]
For shareholders who did not use JASDEC (Japan Securities Depository Center, Inc.) before theshare certificates were computerized, an account (a special account) has been opened with
Sumitomo Mitsui Trust Bank, Limited, the administrator of the shareholders list. For details
regarding the special account, notification of address change, and so on, please contact thetelephone inquiry number listed above.

Sumitomo Mitsui Banking Corporation
AIR WATER INC.

2,007

NORTHERN TRUST CO. (AVFC) RE-HCROO

1,095

The Master Trust Bank of Japan, Ltd. (Trust account)

1,015[Notification of Address Change and Inquiries]
For shareholders who have an account at a securities firm, please contact the firm where youraccount was established for notification of address change and so on. For shareholders who
do not have an account at a securities firm, please contact the telephone inquiry number
listed above.

Notes:

Osaka Head Office
3-6-1 Dosho-machi, Chuo-ku, Osaka-shi, Osaka, 541-0045

Tel. +81-6-6208-1907
Tokyo Head Office
3-25-31 Nishishinbashi, Minato-ku, Tokyo, 105-0003

Tel. +81-3-5777-5777
http://www.morita119.com

1,730

1. Number of shares held is rounded down to the nearest thousand shares.
2. The Company holds treasury shares numbering 1,678 thousand shares.
3. ‌The Dai-ichi Life Insurance Company, Limited shifted to a holding company
system on October 1, 2016, and changed the company name to Dai-ichi LifeHoldings, Inc.